Why the Microsoft Yahoo Merger Wont Create Competition

The announcement of the unsolicited Microsoft bid to merge with Yahoo sent shockwaves through the industry last Friday. Microsoft, in sending an unsolicited merger proposal to the Yahoo board of directors, made one thing perfectly clear, they plan to dominate the internet just like they dominate the software industry.

Let's look behind the curtain so cleverly put up by Microsoft to see what's really going on here. Could Microsoft's merger with Yahoo really spurn needed competition in the online search industry? Not likely, in fact it only serves to eliminate the one company with the best shot at taking on Google, Yahoo. Is competition really that bad? Not really. Yes, Google now dominates the search sector and yes, they dominate the search ad market too. But the search industry as a whole is still in its infancy, even after a decade. And let's face it, Yahoo isn't losing money, in fact it's making quite a bit of it and are in no danger of corporate collapse.

So, basically Microsoft is saying, that after a whole few years of a company dominating a sector that a merger that eliminates a competitor is the answer? How long has Microsoft been dominating the software industry? Almost almost 30 years? That's 3 decades of one company dominating a major sector with no competition in sight. This merger is nothing more than classic Microsoft anti competitive behavior. If you can't beat 'em, buy 'em if you can't buy 'em, destroy 'em. We've seen this time and time again from Microsoft; it's their "MO". Microsoft should not be allowed to be the company that competes with Google on principle alone. Microsoft, in gathering any amount of strength in the internet market would gain far too much control in the technology sector as a whole.